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U.S. Treasury Secretary Henry M. Paulson, Jr. yesterday announced a comprehensive plan to take over the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), and to provide them with needed capital and liquidity. The four-part plan is designed to provide stability to the financial markets—and support the continued availability of mortgage financing for the housing market—while minimizing the risk to U.S. taxpayers. This update examines the plan and its likely ramifications for the financial industry.